Eaton Corp. (ETN) reported that its fourth-quarter net income attributable to common shareholders increased to $362 million from $280 million in the year ago quarter. Net income per share was $1.07, a 30% increase over net income per share of $0.82 in the fourth quarter of 2010.
Net income in both periods included charges related to acquisition integration. Before acquisition integration charges, operating earnings per share in the fourth quarter of 2011 were $1.08 compared to $0.85 per share in the fourth quarter of 2010, an increase of 27%.
Net Sales were $4.03 billion, up from $3.66 billion in the year ago quarter.
Analysts polled by Thomson Reuters expected the company to report earnings of $1.11 per share on revenues of $4.16 billion for the quarter. Analysts’ estimates typically exclude special items.
Alexander Cutler, Eaton chairman and CEO, said, “Our earnings per share came in below the midpoint of our guidance range, driven by revenues in December falling roughly $200 million short of our expectations partially offset by a lower tax rate and better segment operating margins.”
“In light of our strong 2011 results and our outlook for 2012, we are increasing our quarterly dividend by 12%, raising the quarterly dividend from $0.34 per share to $0.38 per share,” said Cutler.
The company estimates that first quarter operating earnings per share, which exclude an estimated $0.01 of charges to integrate recent acquisitions, will be between $0.80 and $0.90 per share. Analysts expect the company to report earnings of $0.97 per share for the first-quarter.
For the full year 2012, the company expects operating earnings per share, which exclude an estimated $0.05 of charges to integrate recent acquisitions, to be between $4.15 and $4.55. Overall, the company anticipates its revenues in 2012 will grow by 4% compared to 2011.
Analysts expect the company to report earnings of $4.49 per share on revenues of $17.20 billion for fiscal 2012.